Sublimation Tip: Track all of your costs
A T-shirt costs you $2 to buy and you sell it for $5. You just made 60 percent profit on that, right? Not quite…
The biggest factor in understanding how to price a sublimated product is tracking all of your costs. Let’s say you are selling T-shirts and each shirt costs you $2 to buy and you sell it for $5. Cool, you just made 60 percent profit on that, right? I’m in business, right? But wait, how much did it cost you to have that shirt shipped to you, and what about the cost of the transfer paper and ink? How about the cost of the printer and heat press? What about the cost of your cell phone, basement space, and fancy website? What about the most important cost of all – your time? Maybe you should have sold the shirt for $15 to make 30 to 40 percent profit. This is an area of focus that must be worked on regularly. Update your numbers and review your pricing on a monthly or at least quarterly basis. This helps you avoid any big surprises that could take away from your success in business.
-Aaron Montgomery, 2 Regular Guys, MontCo Consulting
Authors
OUR DIGITAL PARTNERS
